Livestock futures outperformed the crop markets Thursday
The Export Sales report seemingly supported corn futures Thursday. The nearby September contract gave back its Wednesday gain as the old-crop basis weakened. In contrast, deferred futures were virtually unchanged, which probably reflected a comparatively large result on the weekly USDA Export Sales report. U.S. dollar strength probably limited gains. September corn tumbled 7.0 cents to $4.9725/bushel at Thursday’s close, while December inched up 0.75 cent to $4.815.
Soybean and meal futures proved unable to sustain their Thursday morning rally. The tight old crop situation apparently boosted nearby soybean meal futures Thursday, but most other soy contracts declined. The midday weather updates suggested milder conditions in early September, which apparently undercut soybean futures. Overnight losses in Asian palm oil markets triggered active selling in the soyoil pit. September soybeans settled 3.0 cents lower at $14.30/bushel Thursday afternoon, while November beans sank 4.25 to $13.6825. September soyoil dove 0.53 cents to 43.78 cents/pound, but September soymeal climbed $4.1 to $467.4/ton.
Wheat futures proved surprisingly weak Thursday. Overnight news that a widely anticipated Egyptian tender went only to Eastern European sources probably depressed wheat values somewhat. Traders may also have been selling in response to concurrent U.S. dollar gains and Indian rupee losses, since those suggest reduced demand for U.S. product and accelerated sales of cheap Indian product on the global market. September CBOT wheat fell 5.25 cents to $6.4125/bushel in late Thursday action, while September KCBT wheat dropped 5.25 cents to $7.01, and September MGE futures lost 10.0 cents to $7.2425.
News of improved packer bids seemingly boosted cattle futures Thursday. Early-week futures slippage suggested traders were giving up on ideas packers will pay up for country cattle later this week. However, processors reportedly boosted their bids one-cent Wednesday afternoon, thereby suggesting they might pay higher prices before the weekend. October cattle futures inched up 0.05 cents to 126.97 cents/pound as trading wound down Thursday, and December advanced 0.32 cents to 130.25. September feeder cattle futures gained 0.30 cents to 156.22 cents/pound, while November rose 0.15 to 158.77.
Hog traders may be anticipating a September bounce. The whole hog and pork complex have weakened recently, thereby weighing upon Chicago prices. However, today’s strong midsession pork quote may have reminded traders that cash and wholesale values generally rise moderately during September. Anticipation of such a move may have powered Thursday’s gains. October hog futures surged 1.27 cents to 87.32 cents/pound late Thursday afternoon, while December ran up 1.15 cents to 84.30.